Employer of Record (EOR) Canada: Hire, Manage, and Pay Talent Seamlessly

Tarmack makes it simple to hire, manage, and pay your Canadian team compliantly, even if you do not have a local entity. As your legal employer in Canada, Tarmack's Employer of Record (EOR) and Global PEO solution lets you onboard employees and contractors, run compliant payroll, and stay aligned with federal and provincial rules through a single platform.

Employer of Record (EOR) Solutions in Canada

Employer of Record services make it easy for companies to hire and manage employees in Canada without setting up a local entity. An EOR handles payroll, tax withholding, statutory benefits, and compliance with federal and provincial labor laws, reducing both risk and administrative overhead.

Tarmack provides Employer of Record services designed for growing global teams, with a strong focus on compliance, speed, and local expertise across Canada.

This model is beneficial for global teams that want to enter the Canadian market quickly or hire remote talent across provinces while staying compliant.

With Tarmack acting as the legal employer, global HR leaders can scale teams in Canada quickly. Book a demo now to learn more.

Global Hiring and Onboarding

Expand into Canada without dealing with entity setup or provincial registrations. We help you hire quickly while staying aligned with federal and provincial employment standards.

Hire in Canada without creating a local entity
Apply onboarding tailored to provincial labor norms (e.g., Ontario ESA, Quebec labour standards)
Issue compliant employment contracts and required documentation

Payroll Management

Process payroll in Canada with accuracy and complete tax compliance. We handle all statutory deductions, so payments remain consistent and error-free.

Run CAD payroll with automated statutory deductions
Comply with CPP/QPP, EI/QPIP, income tax, and provincial rules
Access clear, transparent payroll reports each cycle

Compliance Assurance

Stay compliant with Canada's federal and provincial labor regulations. We handle the complexity, so your team stays protected.

Adhere to updates in employment standards, OHS, and tax laws
Prevent employee vs. contractor misclassification issues
Maintain audit-ready records for CRA and provincial authorities

Benefits Administration

Provide benefits that meet Canada's legal standards and employee expectations.

Deliver mandatory benefits such as vacation pay, public holidays, and statutory leaves
Add province-specific perks like extended health or dental plans
Integrate benefits administration with payroll and HR workflows

Benefits of Employer of Record (EOR) in Canada

Tarmack becomes the legal employer for your Canada-based team to manage compliance, payroll, and HR administration. This lets your internal HR and finance teams focus on strategic initiatives rather than dealing with local regulations and administrative burdens.

Enter Canada faster with lower risk: Launch operations without a local entity, cutting hiring timelines and upfront costs. Tarmack lets you test or scale your Canadian team without long-term commitments or complex setup.
Stay fully compliant: Canadian labor laws are strict on contracts, benefits, taxes, and terminations. Tarmack ensures every agreement, registration, and payroll workflow meets provincial and federal requirements, minimizing legal risk.
Simplify payroll and benefits: Manage federal and provincial taxes, social security contributions, and mandatory benefits through a single platform. Run automated payroll with correct CPP/QPP, EI, and income tax deductions for each jurisdiction.
Reduce HR and legal workloads: From onboarding to terminations, Tarmack handles contracts, payroll, and benefits, freeing your HR team for strategic priorities.
Generate compliant employment contracts: Generate contracts aligned with provincial standards, including Ontario's ESA 2000, Quebec's labour standards, and BC and Alberta legislation.

Tarmack also supports global recruitment into Canada, work-permit-ready hires under programs like the Temporary Foreign Worker Program and Global Talent Stream, and compliant onboarding workflows customised by province.

Contact us today to see how Tarmack's Canadian employer of record can accelerate your market entry while ensuring compliance and operational excellence.

Employer of Record Canada Pricing Structure

1. Employee Services

EOR — from $199/employee/month
Full-time hiring without a local entity. Includes compliant payroll, contracts, benefits, HR/legal support, and IP protection.
Recruiting — from 10% of annual salary
Global talent search with shortlisting, interviews, optional background checks, and country-specific hiring guidance.
Payroll — from $15/employee per cycle
Payroll in 150+ countries, payslips, reimbursements, attendance, and compliant payment processing.
Enterprise — custom
For teams of 10+, with tailored pricing, global mobility support, and market advice.

2. Contractor Services

Contractor Recruiting — from 10% of annual salary
Fast global contractor hiring with AI-based matching, interviews, and optional background checks.
Contractor Management — from $39/contractor/month
Local contracts, compliant payouts, expense tracking, automated invoicing, and the option to convert to full-time later.

3. Corporate & Regulatory Services

Company Formation — contact for pricing
Incorporation and documentation support in 150+ countries, with optional payroll or immigration add-ons.
Immigration — from $999 per visa
End-to-end visa and work permit processing with compliance monitoring.
HR Software — from $2/employee/month
Lightweight global HR system for payroll, expenses, attendance, reporting, and ERP integrations.

Our employer of record services in Canada provide transparent pricing for payroll, compliance, and HR support. Hire your remote team in Canada today, simplify your expansion with confidence, and Schedule a Consultation to get started!

Employment Norms in Canada

Canada is a popular country for immigrants owing to its welfare rules and regulations. This means it attracts a high amount of talented individuals from across the world. However, some rules may seem complex to potential employers due to the difference in Canada's federal and provincial regulations. EOR services work with employers to bridge this gap, ensuring legal compliance and helping with employee management.

General Information:

The Canadian currency is the Canadian Dollar (CAD)
Ottawa is the capital of Canada
English and French are the official languages of Canada. Documentation can be in either of these languages to be legally valid.
As of 2022, the GDO of Canada was reported to be USD 2.20 trillion

Individual states and provinces form employment regulations in Canada. The federal government of Canada does not intervene much in labor laws.

Select Section

Employment Contracts
Employee Onboarding
Visa
Work Permits
Minimum Wages
Payroll Cycle
Annual Bonus
Health Benefits
Working hours and overtime
Leaves
Social Security Contributions
Personal Income Tax Rates
Payroll Compliance
Top technical skills in demand
Probation
Termination
Severance Pay
Employees or Contractors
Global PEO
Start Hiring Today
Frequently Asked Questions

Employment Contracts Employee Onboarding Visa Work Permits Minimum Wages Payroll Cycle Annual Bonus Health Benefits Working hours and overtime Leaves Social Security Contributions Personal Income Tax Rates Payroll Compliance Top technical skills in demand Probation Termination Severance Pay Employees or Contractors Global PEO Start Hiring Today Frequently Asked Questions

Employment Contracts in Canada

What employers must know about employment contracts in Canada

Employment law in Canada is primarily provincial. Each province enforces its own employment standards legislation, which sets mandatory minimum terms for wages, hours, leave, and termination.

Federal employment law applies only to a narrow group of industries, including banking, telecommunications, and interprovincial transportation. Employers outside these sectors must comply with provincial statutes and provincial case law.

This distinction matters because contracts that rely on the wrong legislative framework are routinely invalidated. Across Canada, employers cannot contract out of employment standards legislation. In Ontario, the Employment Standards Act, 2000 establishes minimum requirements for:

Hours of work and overtime
Vacation and public holidays
Statutory leaves
Termination notice and severance pay

If any clause fails to meet the ESA requirements, it is unenforceable. More importantly, courts often invalidate the entire termination provision rather than severing the offending language. This is why termination clauses receive the most scrutiny in Canadian employment litigation.

Termination clauses and the common law risk

When a termination clause is unenforceable, the contract defaults to common law notice. This common law notice is based on factors such as age, role, length of service, and availability of similar employment. In practice, this can mean several months of additional pay beyond statutory minimums.

Canadian courts have repeatedly held that even technical ESA violations, including failures that arise only in rare circumstances, are sufficient to void termination clauses entirely.

Fixed-term contracts do not eliminate termination liability

Many employers use fixed-term contracts to limit severance exposure. In Canada, this approach often backfires. If a fixed-term employee is terminated before the end of the term and the contract does not clearly limit compensation, courts may award damages equal to the remainder of the contract.

Judges also examine whether the employee understood the implications of a fixed-term agreement and whether the terms were clearly explained. Ambiguous renewal language or informal extensions can convert fixed-term arrangements into indefinite employment.

Workplace location and return-to-office authority

The rise of remote work has created new contractual risk. Where employment agreements do not specify work location or reserve the employer's right to modify workplace arrangements, courts may treat remote work as an implied term of employment.

This limits an employer's ability to mandate return-to-office policies without triggering constructive dismissal claims. Contracts should clearly address:

Primary place of work
Remote or hybrid arrangements
The employer's right to revise workplace policies

Silence in these areas increasingly favors employees.

Need to formalise a hybrid or remote-first model for Canadian talent? Tarmack can issue contracts and policies that codify your RTO approach while staying compliant.

Foreign workers and LMIA-linked contract compliance

Employment contracts for LMIA-based foreign workers are subject to heightened regulatory scrutiny. The contract must mirror the LMIA approval in all material respects, including:

Job duties
Wage levels
Work location
Hours of work

Any inconsistency can jeopardize the worker's permit and expose employers to penalties under the Temporary Foreign Worker Program. Recent changes to LMIA wage assessment and enforcement indicate a stricter compliance environment going forward.

Looking ahead, Canadian employment law is moving toward stronger enforcement rather than greater contractual flexibility.

How Tarmack helps manage contract laws in Canada

For organizations hiring across provinces or employing foreign workers, managing compliant employment contracts alongside payroll and benefits is increasingly complex.

This is where Tarmack adds value by aligning employment agreements with provincial law, statutory payroll requirements, and immigration conditions.

It lets you create airtight Canadian employment contracts without hiring local counsel each time. Tarmack's Canadian EOR team standardises and maintains province-specific agreement templates for you. Book a Demo!

Employee Onboarding in Canada

Onboarding in Canada is both a compliance process and a cultural integration journey. Employers must balance legal requirements with creating a welcoming experience that sets up new hires for success.

Legal Compliance Requirements:

Issue and sign compliant employment agreements that reflect provincial employment standards.
Collect completed federal and provincial tax forms (such as TD1s) before or on the first day.
Register the employee with the applicable workers' compensation board (for example, WSIB in Ontario, CNESST in Quebec).
Conduct mandatory occupational health and safety (OHS) orientation and training, documented and tailored to the role and province.
Ensure OHS training covers workplace hazards, incident reporting procedures, and employee rights to refuse unsafe work.
Note that all employees, including part-time and casual workers, must receive OHS orientation in most provinces.

Onboarding Process

There are no specific laws for the onboarding process in Canada. However, the whole process may take about two weeks
Employers can conduct background checks on employees and get the contracts or agreements signed by both parties.
Certain mandatory documents required before beginning work -
- Copy of Social Insurance Number (SIN) card - employees who don't have this must apply for it with the help of the employer
- Valid government-issued photo identity proof
- Work permit (if applicable)
- Other work-pertinent documents requested by the employer

Want province-specific onboarding checklists baked into your HR stack? Tarmack, an employer of record company in Canada, walks every new hire through compliant, engaging onboarding step by step. Get Started.

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Visa in Canada

Canada has mainly three types of work permits:

Employer-specific work permit

Required when a Canadian employer offers a job to a foreign national

Open work permit

Allows the applicant to work for any company in Canada (the employer must be registered with the Canadian government)

Business Visa

Requires proof of the individual's business and that they have no intention of entering the Canadian labour market
Valid for up to 6 months.

Work Permits in Canada

Most foreign nationals need a valid work permit to work in Canada. Work permits are issued under the Immigration and Refugee Protection Act and are tied to specific conditions such as employer, role, location, and duration. Choosing the correct permit type is critical for compliance obligations, worker mobility, and long-term immigration options.

Types of work permits

Canadian work permits fall into two broad categories.

Employer-specific work permits

These permits authorize work for a single employer in a defined role and location. Most employer-specific permits require a Labour Market Impact Assessment (LMIA), which confirms that hiring a foreign worker will not negatively affect the Canadian labour market.

Key LMIA-based pathways include:

Standard LMIA: Requires recruitment efforts, prevailing wage compliance, and proof of labour shortage.
Global Talent Stream (GTS): A fast-track LMIA program for highly skilled roles, offering two-week processing and exemption from advertising. Employers must meet Category A or B criteria and commit to a Labour Market Benefits Plan.

Changes to job duties, wages, or location generally require a new permit. Certain permits are exempt from LMIA requirements due to trade agreements or public policy considerations, including:

Intra-company transferees
CUSMA professionals
Research, academic, and charitable roles

Even when exempt, employers must submit job details to IRCC and comply with wage and working condition requirements.

Open work permits

Open permits allow foreign nationals to work for most employers. Eligibility is limited and includes spouses of skilled workers or students, Post-Graduation Work Permit holders, and certain permanent residence applicants. These permits are not available for standard employer-led hiring.

Work permit requirements

Regardless of permit type, applicants must meet core eligibility criteria.

Workers must:

Prove temporary intent to leave Canada when the permit expires
Show sufficient financial support
Meet health and security admissibility requirements
Agree to comply with permit conditions

Employers must:

Ensure wages and working conditions meet provincial employment laws
Match employment contracts to LMIA or exemption terms
Comply with inspection and audit requirements

Medical exams, biometrics, and police certificates may be required depending on the role and country of residence.

Work permit application process

To apply for a work permit in Canada, here's what the process typically looks like for an employer:

Determine whether the role requires an LMIA, qualifies for GTS, or is LMIA-exempt
Employer secures an LMIA or submits an offer of employment through IRCC
Worker applies online or, where eligible, at a port of entry
Immigration, Refugees, and Citizenship Canada reviews eligibility, admissibility, and compliance before issuing the permit

Processing times vary by permit type and country. Employers and workers must ensure that permit terms, employment contracts, and payroll practices remain aligned throughout employment.

An Employer of Record, like Tarmack, in Canada can work with your immigration counsel to ensure that job descriptions, wages, NOC codes, and work locations in contracts and payroll match what was promised in your LMIA and GTS applications. This helps keep your hiring process compliant and reduces the risk of issues with immigration authorities. Contact Us!

The EOR ensures that employment contracts and payroll details align with LMIA and GTS commitments.
This partnership helps avoid discrepancies that could lead to permit denials or compliance issues.

Minimum Wages in Canada

Federal and provincial differences in minimum wage in Canada

Canada does not have a single national minimum wage. For non-federally regulated sectors, each province and territory sets its own minimum wage, while a separate federal minimum wage applies to federally regulated private-sector industries.

As of 2025, provincial general minimum wage rates range from around 15 CAD per hour in Alberta and Saskatchewan up to nearly 20 CAD in Nunavut, with provinces like Ontario, BC, Quebec, Manitoba, Nova Scotia, PEI, and Yukon sitting between those bands.

The federal minimum wage for employees in federally regulated sectors is also indexed and, as of early 2025, is set in the mid-teens to high-teens per hour range, adjusted annually using the Consumer Price Index.

Here is the complete breakdown of minimum wage rates across all Canadian provinces and territories as of late 2025:

Province/Territory	Minimum Wage (CAD/hour)	Effective Date
Alberta	$15.00	October 1, 2018
British Columbia	$17.85	June 1, 2025
Manitoba	$16.00	October 1, 2025
New Brunswick	$15.65	April 1, 2025
Newfoundland & Labrador	$16.00	April 1, 2025
Northwest Territories	$16.95	September 1, 2025
Nova Scotia	$16.50	October 1, 2025
Nunavut	$19.75	September 1, 2025
Ontario	$17.60	October 1, 2025
Prince Edward Island	$16.50	October 1, 2025
Quebec	$16.10	May 1, 2025
Saskatchewan	$15.35	October 1, 2025
Yukon	$17.94	April 1, 2025

When you hire through an EOR, the worker's province or territory of work typically governs which minimum wage applies, and the EOR's payroll system must track scheduled increases by jurisdiction.

Unsure how provincial minimum wage hikes will affect your Canadian payroll budget? Tarmack's EOR Canada engine updates location-based pay rules automatically. Contact Us!

Payroll Cycle in Canada

The payroll cycle in Canada is usually bi-weekly. Certain employers may make payments on a weekly or monthly basis.

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Annual Bonus in Canada

Canadian law does not mandate any bonuses. However, the employees are free to negotiate bonuses before signing the contract.

Health Benefits in Canada

Government Public insurance is provided to all full-time employees in Canada.
This includes emergency room care, visits to doctors, and certain diagnostic services such as X-rays and MRIs.
The health care services are administered and delivered in the Provinces and territories as per the Canada Health Act.

Working hours and overtime in Canada

Work hours: Standard working hours in Canada are 8 hours a day and 40 hours a week.
Break: Canadian law mandates that a 30-minute break (undivided) be provided to employees working for 5 consecutive hours. The break must be provided before the end of 5 hours.
Overtime: The maximum working hours are 10 hours a day and 48 hours a week. Any hours excess of the standard working hours is considered overtime, for which the pay is 1.5 times the regular pay.

Leaves in Canada

Canadian employees in federally regulated workplaces and industries are entitled to different types of leaves based on their contracts and provinces.

Sick Leaves

As per the Canadian Labor Code, 3 days of paid sick leave is allowed for an employee who has been in the company for 3 consecutive months.

Parental leaves

All parental leaves in Canada are unpaid.
Pregnant employees can avail maternity leave of 17 weeks.
63 weeks of parental leave is also granted. The same is true in the case of adoption.

Annual Leaves

A 2-week paid annual leave is granted to employees of federally regulated industries who have worked for up to one year.
For employees who have worked for five years, the annual leave is up to 3 weeks
For employees who have worked for ten years, the annual leave is up to 4 weeks.

Public Holidays (for the Calendar year 2024)

A few of the following dates may vary according to the traditional calendar.

New Year's Day - January 1
Good Friday - March 29
Labor Day - 1st Monday of September
Victoria Day - May 20
Saint-Jean-Baptiste Day (Quebec only) - June 24
Canada Day - July 1
Civic Holiday (Except in Quebec and Yukon) - August 5
Thanksgiving - October 14
Remembrance Day - November 11
Christmas Day - December 25
Boxing Day - December 26

Public Holidays (for the Calendar year 2025)

A few of the following dates may vary according to the traditional calendar.

New Year's Day - January 1
Good Friday - April 18
Labor Day - 1st Monday of September
Victoria Day - May 19
Saint-Jean-Baptiste Day (Quebec only) - June 24
Canada Day - July 1
Civic Holiday (Except in Quebec and Yukon) - August 4
Thanksgiving - October 13
Remembrance Day - November 11
Christmas Day - December 25
Boxing Day - December 26

Social Security Contributions in Canada

Employees in Canada are required to make mandatory social security contributions, which generally consist of payments to the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP), and Employment Insurance (EI). These contributions are updated annually and are shared between employers and employees. An Employer of Record (EOR) ensures the correct amounts are calculated and remitted each pay cycle.

2025 Contribution Rates and Maximums

CPP (Tier 1): 5.95% on earnings up to $71,300 (Year's Maximum Pensionable Earnings, YMPE), with a maximum employee contribution of $4,034.10.
CPP (Tier 2): 4.00% on earnings between $71,300 and $81,200 (Year's Additional Maximum Pensionable Earnings, YAMPE), with a maximum contribution of $396.00.
EI (Federal): 1.64% on earnings up to $65,700 (Maximum Insurable Earnings, MIE), with a maximum employee contribution of $1,077.48. Employer contributions are 1.4 × the employee rate, for a maximum of $1,508.47.
Basic exemption: The first $3,500 of annual earnings is exempt from CPP/QPP contributions.
Self-employed individuals: Pay both the employee and employer portions for CPP/QPP. They may opt into EI coverage, but only for special benefits (sickness, parental, caregiving), not regular EI.

Quebec Specific Plans

QPP: Contribution rates and earnings limits mirror CPP, but the employee rate is slightly higher at 6.40% (5.4% base plan + 1% additional plan). The maximum employee contribution is $4,563.20, with employers matching the same amount.
EI (Quebec): Employees contribute 1.29% on earnings up to $65,700, with a maximum of $847.53. Employers contribute about 1.81%, with a maximum of $1,188.14.
QPIP (Quebec Parental Insurance Plan): Employees contribute 0.494% on earnings up to $98,000, with a maximum of $484.12. Employers contribute at 0.692%, with a maximum of $678.16. QPIP replaces federal EI parental benefit premiums in Quebec.

Contribution Table (2025)

Plan	Contribution Rate	Maximum Earnings	Maximum Employee Contribution	Employer Contribution
CPP (Tier 1)	5.95%	$71,300 (YMPE)	$4,034.10	Match employee
CPP (Tier 2)	4.00%	$81,200 (YAMPE)	$396.00	Match employee
EI (Federal)	1.64%	$65,700 (MIE)	$1,077.48	1.4 × employee rate (max $1,508.47)
QPP (Quebec)	6.40%	$71,300 (YMPE)	$4,563.20	Match employee
EI (Quebec)	1.29%	$65,700 (MIE)	$847.53	1.81% (max $1,188.14)
QPIP (Quebec)	0.494%	$98,000	$484.12	0.692% (max $678.16)

Social security contributions in Canada are mandatory and vary slightly between provinces, particularly Quebec. Employers and employees share responsibility for CPP/QPP and EI/QPIP, while self-employed individuals pay both portions. An employer of record company in Canada like Tarmack ensures compliance by managing calculations, remittances, and provincial differences.

Schedule A Consultation today to simplify compliance and protect your business.

Personal Income Tax Rates in Canada

Canada uses a progressive personal income tax system with combined federal and provincial/territorial rates. The federal government publishes annual brackets and rates that apply nationwide, while each province and territory adds its own layer with different thresholds and percentages.

For example, lower-income bands are taxed at modest combined rates, while higher incomes attract significantly higher marginal rates once federal and provincial portions are added.

From an employer's perspective, payroll systems must withhold income tax according to the employee's province or territory of employment and the federal tables, using forms like the federal and provincial TD1 to determine credits and taxable income.

Your Canadian EOR applies the appropriate deduction tables based on current CRA and provincial guidance and includes these on year-end slips for employees (for example, T4s and RL-1s in Quebec).

2025 Federal income tax rates:

Taxable Income	Federal Tax Rate
Up to $55,867	15%
$55,867 to $111,733	20.5%
$111,733 to $173,205	26%
$173,205 to $246,752	29%
Over $246,752	33%

Note: Effective July 1, 2025, the Government of Canada proposed to reduce the lowest income tax rate from 15% to a lower rate as part of cost-of-living measures.

Key provincial examples (top marginal rates):

Province	Top Marginal Rate (Combined Federal + Provincial)
Alberta	48%
British Columbia	53.5%
Ontario	53.53%
Quebec	53.75%
Manitoba	50.4%
Saskatchewan	50.5%

Let Tarmack handle the complexity of multi-province tax withholding so your Canadian team members are always paid accurately and on time. With our employer of record services Canada, you can simplify payroll compliance and focus on growing your business. Schedule A Consultation.

Payroll Compliance in Canada

What employers need to know about payroll compliance in Canada

Payroll compliance in Canada is a multi-layered responsibility for employers. Getting it right means accurate calculations, timely payments, and meticulous record-keeping. Here's what you need to know:

Payroll compliance in Canada is driven by law: Payroll is governed by federal statutes such as the Income Tax Act, Canada Pension Plan, and Employment Insurance Act, along with provincial employment standards legislation. Company policies or contracts cannot override these requirements.
Employers are fully responsible for deductions and remittances: Employers must correctly deduct and remit income tax, CPP/QPP in Quebec, and EI. Outsourcing payroll does not transfer legal responsibility, and errors can result in penalties, interest, and director liability.
Provinces control pay frequency and pay statement rules: Provincial employment standards laws dictate how often employees must be paid and what information must appear on wage statements. For example, Ontario's Employment Standards Act, 2000 requires regular pay periods and detailed pay stubs.
Overtime, vacation, and holiday pay are common compliance gaps: Payroll systems must accurately apply provincial rules for overtime thresholds, vacation accrual, and public holiday pay. Misclassification or simplified calculations often lead to underpayment and enforcement action.
Final pay and severance are subject to strict timelines: When employment ends, final wages, accrued vacation, and statutory termination or severance pay must be issued within timelines set by provincial law. Delays frequently trigger payroll complaints.
Foreign worker payroll must match immigration approvals: For LMIA-based employees, wages, hours, and compensation terms must align with approved work permit conditions. Deviations can lead to penalties under the Temporary Foreign Worker Program, including hiring bans.
Payroll records must be audit-ready: Employers are required to retain payroll records for several years and produce them during inspections or audits. Missing or incomplete records can result in penalties even if wages were paid correctly.
Penalties can escalate and reach leadership: Payroll non-compliance can lead to fines, interest, back-pay orders, and prosecution, with directors and officers potentially held personally liable for unpaid wages and statutory remittances.

Tarmack simplifies payroll compliance in Canada by handling local tax and labor law requirements for you. It automates statutory deductions, tax filings, and payroll calculations, ensuring wages, remittances, and reports comply with federal and provincial rules without manual guesswork. Tarmack also keeps your contracts and employment terms aligned with regulatory standards, reducing the risk of penalties and misclassification. Schedule A Consultation.

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Top technical skills in demand in Canada

Canada's labour market is seeing strong demand for technical skills, especially in tech, data, and infrastructure roles. Here are the top skills employers are looking for in 2025:

Software development (cloud, full-stack, and mobile)
Data analytics and data science
DevOps and cloud engineering
Cybersecurity
AI and machine learning engineering
Technical product management
IT project management for digital transformation

These skills are in high demand across industries such as technology, financial services, health tech, government digital teams, and manufacturing, adopting Industry 4.0 tools. Canadian employers are actively seeking professionals who can work remotely from provinces like Ontario, BC, Quebec, and Alberta.

Looking to hire Canadian software engineers, data scientists, or cloud specialists? Tarmack's global recruitment and EOR services can help you source and employ top tech talent efficiently. Explore Tarmack's global recruitment and hiring solutions.

Tarmack's recruitment solution for hiring in Canada

Beyond acting as your Canadian EOR, Tarmack offers global recruitment and hiring support so you can identify, evaluate, and hire top Canadian talent across provinces. Tarmack's global recruitment solution typically covers sourcing, screening, coordination of interviews, and alignment of offers with local market salary benchmarks and legal requirements.

Once you select a candidate, Tarmack seamlessly transitions them into an EOR Canada employment relationship, issuing a compliant contract, running onboarding, and managing payroll and benefits in the same platform. This end-to-end approach shortens time-to-hire, reduces drop-off due to slow contracting, and ensures every new hire in Canada is compliant from day one.

Need help finding and hiring Canadian talent? Explore Tarmack's global recruitment and hiring services and build your next team in Canada.

Probation in Canada

The probation period in Canada varies from province to province. It is generally from 3 months to 6 months. Even though there aren't any rules for probation, it is commonly practised to avoid any legal issues later on.

Termination in Canada

Companies in Canada can lawfully terminate an employee only by providing a termination notice. The following norms are generally observed.

Non-unionized employees can be terminated without cause with the required notice. This applies to all provinces except Nova Scotia, Quebec, and the federal jurisdiction.
There are certain situations in which Canadian employment law protects employees from dismissal. These include maternity causes, domestic violence, parental causes, on the grounds of compassion, critical illness, and other reasons.

Severance Pay in Canada

As per Canadian Law, employees who have worked for 12 months or more are entitled to severance pay. The wage for every 2 days per year worked before termination is calculated as the severance pay.

Employees or Contractors in Canada

In Canada, people can be employed as full-time employees or contractors. Full-time employees are those who are on a payroll, enjoy other benefits and whose taxes are paid by the employer.
On the other hand, contractors in Canada are classified into two types - dependent and independent. Dependent contractors have some benefits (such as payroll or health insurance), while independent contractors have no benefits. They have to pay their taxes and are hired on a project-to-project basis.
Taxes are incurred when people are taken on as employees while independent contractors do not incur taxes. Thus, misclassification of the two would lead to a demand for back pay of the accrued taxes as well as additional penalties.
While hiring contractors may seem profitable initially, it is not in the long run. Also, workers tend to prefer being full-time employees for benefits and steady pay.

Global PEO in Canada

An Employer of Record (EOR), also known as a Global PEO in Canada, enables companies to hire employees and contractors in Canada without the need to set up a local legal entity. By partnering with an EOR, you can onboard, manage, and pay talent seamlessly, ensuring compliance with Canadian labor laws while focusing on your core business goals. Get Started.

Start Hiring in Canada Today

Tarmack's Employer of Record Canada solution combines competitive, transparent pricing with deep local expertise so you can hire, manage, and pay Canadian employees and contractors efficiently and compliantly.

Cost-effective plans help you build teams in Canada without hidden fees, while the platform standardises onboarding, payroll, and compliance across provinces.

Whether you are hiring your first Canadian employee or scaling a 50-person remote team, Tarmack's Canadian EOR and Global PEO offering streamlines every step, from recruitment and work permits to contracts and payroll.

FAQs

What is an Employer of Record (EOR) in Canada?

An Employer of Record in Canada is a local company, like Tarmack, that becomes the legal employer of your workers in Canada while you maintain operational control over their work. The EOR handles employment contracts, payroll, tax remittances, benefits, and compliance with Canadian federal and provincial employment laws.

What is the cost of an Employer of Record in Canada?

The prices for Tarmack EOR Canada services are clear and easy to plan for. It's $199 per employee each month and $39 per contractor each month. If you only need payroll support, it starts at $15 per employee per cycle. For further breakdowns, contact us.

What is a Labour Market Impact Assessment (LMIA)?

An LMIA is a document certain Canadian employers must obtain before hiring a foreign worker under the Temporary Foreign Worker Program. It assesses whether hiring a foreign national will have a positive, neutral, or negative effect on the Canadian labour market and, if positive or neutral, supports the worker's application for a work permit.

What is a temporary foreign worker (TFW) in Canada?

A temporary foreign worker is a non-citizen and non-permanent resident authorised to work in Canada for a specific employer, in a specific role, for a limited period under a work permit. TFWs may be hired under LMIA-required streams like TFWP or LMIA-exempt routes, but employers must comply with program rules, wage requirements, and inspection regimes.

What is the Temporary Foreign Worker Program (TFWP)?

The TFWP is a Canadian federal program that allows employers to hire foreign workers to fill genuine labour shortages when qualified Canadians or permanent residents are not available. It is typically LMIA-based, requires employers to meet specific recruitment, wage, and working condition standards, and is subject to compliance inspections and penalties for non-compliance.